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Misr Capital Launches first Investment Fund in Debt Instruments, at an Initial Size of EGP 100 Million
01/09/2021
Banque Misr and Misr Capital, the investment banking services arm of Banque Misr, announced on Wednesday, 1st September 2021 the initiation of subscription in the "Misr Capital Investment Fund for Investment in Debt Instruments with a Periodic Return", which is an "every month" fund, as the first investment fund in debt instruments to be launched in the Egyptian market since 2013, at an initial size of EGP 100 million. The "every month" fund was launched exclusively for clients of Banque Misr, Misr Capital and Misr Capital Bond Brokerage, with subscription therein being open via three parties on an exclusive basis; namely Banque Misr, Misr Capital and Misr Capital Bond Brokerage.

 
Mr. Akef El-Maghraby, Vice Chairman of Banque Misr and Chairman of Misr Capital Company, stated that the launch of the "every month" fund as the first investment fund in debt instruments for almost a decade comes in line with the philosophy of Banque Misr and Misr Capital Company in providing innovative investment solutions to individual investors and offering various means to invest an appropriate amount in the Egyptian debt market suited for various segments of retail banking. El-Maghraby pointed out that the fund allows investment in low-risk investment channels such as medium and long-term debt instruments and bank deposits, in addition to Egyptian treasury bills. The "every month" fund provides investors with access to a distinguished cumulative return in Egyptian pounds and monthly dividends, together with the possibility of subscription, daily purchase and monthly redemption for clients of Banque Misr and Misr Capital Company. El-Maghraby underscored the efforts of Banque Misr and Misr Capital towards maximizing and diversifying the investor base in light of the growth of the debt instruments market, supported by the initiatives of the Egyptian government and regulatory bodies to develop and further that market; this being a part of Banque Misr's plan to introduce new funds targeting diverse types of assets - such as gold, commodities and others.

 
On his part, Mr. Khalil El-Bawab, CEO and Managing Director of Misr Capital, expressed his gratitude for the company's launch of the third fund this year, as two cash liquidity funds had been launched at the beginning of the year, namely "Tharwa Life Insurance Company Cash Liquidity Fund in Egyptian Pounds with cumulative daily return" and "Misr Life Insurance Company Cash Fund in Egyptian pounds with a cumulative daily return", in order to strengthen the company's position as the largest asset manager in Egypt. This is in light of the company's strategy, which aims to diversify the investment products package and maximize the base of managed assets to reach EGP 40 billion by the end of next year. Mr. El-Bawab added that the company's position as the largest asset manager in Egypt requires it to work hand in hand with all concerned parties to support the debt instruments market in Egypt, by contributing to attracting new investors to the market through new products that meet their needs.

 
Worth noting is that Misr Capital is the largest investment fund manager in Egypt, with an asset base of more than EGP 30 billion, whilst also being one of the largest asset managers in the Middle East and North Africa - according to Forbes Middle East. It is also the only company that manages Euro and US Dollar-denominated liquidity funds. The company provides investment services in the areas of asset management; from funds and investment portfolios in stocks, to Islamic and balanced stocks, capital protection, cash liquidity and fixed income tools. Brokerage activity in bonds has been added through Misr Capital Brokerage Company, which provides its services primarily in the Egyptian fixed income market, while offering its services to other markets in the Middle East and Africa.
 
The company commands a portfolio of direct investments and contributions worth more than EGP 12 billion in various fields; including banking, financial technology, financial leasing, real estate and petrochemicals. Misr Capital holds a leading position in providing advisory services and integrated financial solutions for investment banking services, specifically in the field of debt instruments, whereby it executed major securitization and sukuk issuance deals in the Egyptian market.

 
This issuance came in light of Banque Misr's strategy to provide all that is new in the world of debt markets in Egypt and to procure new opportunities in the Egyptian market, which would achieve diversity in existing debt instruments. The issuance is also an attestation of Banque Misr's interest in non-banking financial activities, through Misr Capital Company - the investment banking services arm of Banque Misr - as it underscores the trend towards developing all activities of the debt instruments market.